The iron condor, leg by leg, with two real trades
The hedg3 Team
An iron condor is four options on one expiry, built as two credit spreads: a bull put spread below the stock and a bear call spread above it. It opens for a credit and keeps the most when the stock finishes between the two sold strikes. The two bought options cap the loss on either side. The gap between a sold strike and the bought strike beyond it is the wing: $95 to $90 is $5 a share, $500 on 100 shares.
Iron condor
CreditTheta AgentHigh-IV AgentThe numbers at expiry
- Max profit: $200, the credit, with XYZ between $95 and $105.
- Max loss: $300 below $90 or above $110: the $500 wing less the $200 credit.
- Breakevens: $93 and $107.
- Collateral: $300 held at entry.
Why the max loss is $300
Two numbers set it: the credit collected at the open, and the width of one wing. The two sold options bring in $320 and the two bought options cost $120, so the condor opens for a $200 credit. At expiry the worst case is one side fully in the money: below $90 the 95 put is assigned and the 90 put is exercised, so 100 shares are bought at $95 and sold at $90, a $500 loss, the full wing. The calls expire worthless and the $200 credit is kept.
| Sell the 95 put | +$160 |
| Sell the 105 call | +$160 |
| Buy the 90 put | −$60 |
| Buy the 110 call | −$60 |
| Net credit | +$200 |
| 95 put assigned: buy 100 XYZ at $95 | −$9,500 |
| 90 put exercised: sell 100 XYZ at $90 | +$9,000 |
| The 105 and 110 calls expire | $0 |
| Credit kept from the open | +$200 |
| Max loss | −$300 |
Only one side can lose. XYZ cannot finish below $90 and above $110 on the same day, so the loss is one $500 wing less the $200 credit, never both wings. The same $300 is the collateral the broker holds from the open.
Where assignment happens
Two danger zones. Between $90 and $95 the 95 put is assigned and the 90 put expires: you own 100 shares at $95, $9,500. Between $105 and $110 the 105 call is assigned: you are short 100 shares at $105, which needs a margin account. Past either wing the legs cancel and the loss is the $300 maximum. Closing before expiry avoids both zones.
Winner: MRVL, Oct 9 to Oct 27
| Leg | Contract | Price |
|---|---|---|
| Buy | MRVL 225 put | $1.545 |
| Sell | MRVL 230 put | $2.14 |
| Sell | MRVL 305 call | $4.675 |
| Buy | MRVL 310 call | $3.875 |
- Opened
- Oct 9, 2026, 12:28 PM ET · MRVL $271.62
- Net credit
- $1.40 · $140 received
- Target
- Buy back at $0.70 · +$70
- Stop
- Held to expiry
- Closed
- Oct 27, 2026, 12:24 PM ET · MRVL $243.28
- How
- Trailing exit
MRVL was at $271.62 when the condor opened, inside a $75 range: $230 on the put side, $305 on the call side. Over 12 sessions it fell to $243.28, still above the sold put, while the cost to close went from $1.40 to $1.015, and the trailing exit closed it on Oct 27: +$38.50.
Loser: CRWV, Oct 2 to Oct 23
| Leg | Contract | Price |
|---|---|---|
| Buy | CRWV 73 put | $0.695 |
| Sell | CRWV 74 put | $0.80 |
| Sell | CRWV 101 call | $2.195 |
| Buy | CRWV 102 call | $2.005 |
- Opened
- Oct 2, 2026, 2:17 PM ET · CRWV $89.50
- Net credit
- $0.30 · $30 received
- Target
- Buy back at $0.13 · +$17
- Stop
- Held to expiry
- Closed
- Oct 23, 2026, at expiry · CRWV $54.235
CRWV fell from $89.50 to $54.235 in three weeks, through the 74 sold put and past the 73 bought put. This condor carried no price stop and was held to expiry, so it lost the full $70.
Every trade, on the record
The two trades above are the Theta Agent's most recent settled winner and loser. Every iron condor it closes, winners and losers, is on the public track record.
Each half of the condor stands on its own: the bull put spread and the bear call spread. The full strategy page covers the Greeks and adjustments: iron condor.
